Breaking: Euro plummets to May 2025 low vs bullish USD amid France's debt crisis

The EUR/USD pair is facing intense selling, plummeting to its lowest level since May 2025 against the bullish USD. The decline, which has lasted throughout the Asian trading session, is attributed to concerns over France's growing debt crisis and political instability ahead of the upcoming presidential election. French borrowing costs have risen alongside global yields, with the 10-year bond yield near its highest level in decades, exacerbating the downward pressure on the Euro.

Meanwhile, far-right leader Marine Le Pen, currently leading the polls, has proposed tax cuts and proposed lowering the retirement age to just 60, which is seen as a negative signal for the Euro. The USD, buoyed by geopolitical uncertainties and a weaker-than-expected US Nonfarm Payrolls report, is rallying to a fresh high since April 2025, further undermining the Euro's position.

The Euro, the second most heavily traded currency globally, underpins 20 European Union countries and is primarily managed by the European Central Bank (ECB), which focuses on maintaining price stability.